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A Potential $295.6 Billion Video Game Industry is Fueling This Company’s Massive Acquisition Spree(1)

Now Listing on the NASDAQ, Enthusiast Gaming Holdings Looks Primed To Accelerate This Strategy

United States NASDAQ: (EGLX) Canada TSX: (EGLX)

The world of gaming has never been as profitable as it is today.

After a record-setting year for video games, the NPD Group says gamers just spent a record estimated $5.61 billion in March – a roughly 18% jump from about $4.75 billion year-over-year.(2)

Even better, just three months into 2021, video game sales have already shot up approximately 30% to $14.92 billion from just about $11.47 billion year-over-year.(2) But, even more striking? According to Mordor Intelligence, many analysts believe the gaming industry could be worth approximately $295.6 billion by 2026, up from roughly $162 billion in 2020.(1)

As you can imagine, this has created a significant amount of buzz in the markets.

But, this is just scratching the surface. Why?

  • The gaming community has become a juggernaut. Nearly half of the world’s population of about 7.7 billion people are gamers, claims the Financial Post.(3)
  • Gaming revenue has eclipsed box office revenue, generating roughly $138 billion of revenue in 2018 and around $151.55 billion in 2019. It also hit about $162 billion in 2020. Over the next six years, though, it could run to approximately $295.6 billion.(4)
  • The eSports sector saw revenues reach about $1.1 billion in 2019 – with around 82% of that coming from media rights, advertising, and sponsorships.(5)

With numbers like that, it comes as no surprise industry heavyweights like Enthusiast Gaming Holdings Inc. United States NASDAQ: (EGLX) Canada TSX: (EGLX) are on an M&A spree. Now that it’s uplisted to the NASDAQ, though, watch out.

The Top Reasons to Consider Enthusiast Gaming Holdings Inc. United States NASDAQ: (EGLX) Canada TSX: (EGLX)

  1. After a record-setting year for video games, the NPD Group says gamers just spent a record estimated $5.61 billion in March – a roughly 18% jump from about $4.75 billion year-over-year.(2)
  2. In the first three months of 2021, video game sales have already increased approximately 30% to $14.92 billion from just about $11.47 billion year-over-year.(2)(1) Analysts also believe the gaming industry could be worth about $295.6 billion by 2026, up from roughly $162 billion in 2020, according to Mordor Intelligence.(2)
  3. According to the Financial Post, nearly half of the world’s approximately 7.7 billion people are gamers.(3)
  4. According to Enthusiast Gaming CEO Adrian Montgomery, “One out of every two American males between 18 and 34 visits an Enthusiast Gaming property every month, which is a pretty powerful statistic and a statistic a lot of traditional media companies would be envious of.”(6)
  5. The second a gamer puts down their controller, Enthusiast Gaming Holdings Inc. owns their forthcoming gaming experience. Suppose a gamer is playing a game such as Call of Duty online with friends, for example. In that case, the Enthusiast experience begins the second the game ends.
  6. For the fourth quarter of 2020, the Company reported approximately $42.5 million in revenue, a nearly 34% increase compared to pro forma revenue of about $31.7 million in Q3 2020. Gross profit was also about $8.1 million, an increase of roughly 52% compared to pro forma gross profit of around $5.3 million in Q3 2020.(7)
  7. The Company joined the ‘Comscore 100’ ranking of Top 100 Internet Properties in the United States – one of only two gaming properties to make the list alongside Amazon’s TWITCH.TV, which ranked #1 Gaming Information property for unique visitor traffic from mobile devices.(7)
  8. It strengthened its balance sheet by approximately $50 million with the combination of a bought deal financing for gross proceeds of about $42.5 million and the reduction of the Company’s indebtedness through the conversion of its outstanding debentures of approximately $9 million.(7)
  9. It announced significant partnership deals with Samsung and TikTok.(7)
  10. Enthusiast Gaming Holdings Inc. has bullish technicals, with solid fundamental growth.

Enthusiast Gaming Holdings Inc. United States NASDAQ: (EGLX) Canada TSX: (EGLX) Looks Technically Bullish 

The stock bottomed out in Nov 2020 at around $1.41. However, since then, it’s shot up to a high of about $10.87,creating a potential move of nearly 671%. Given the rapid growth of the gaming industry, coupled with solid earnings growth and a NASDAQ listing, this could be the start of a more significant move.

In addition, the stock is also displaying bullish indicators including its 20 Day Moving Average, 20 – 50 Day MACD Oscillator, 20 – 100 Day MACD Oscillator, 20 – 200 Day MACD Oscillator, 50 Day Moving Average, 50 – 100 Day MACD Oscillator, 50 – 150 Day MACD Oscillator, 50 – 200 Day MACD Oscillator, 100 Day Moving Average, 150 Day Moving Average, 200 Day Moving Average, and 100 – 200 Day MACD Oscillator.(11)

Just Who is Enthusiast Gaming Holdings Inc. United States NASDAQ: (EGLX) Canada TSX: (EGLX)

Enthusiast Gaming is building what could be the largest media platform for video game and eSports fans to connect and engage worldwide. Reaching over an estimated 300 million gamers every month, the Company is a member of the ‘Comscore 100’ ranking of the top Internet Properties in the US and the largest in the Gaming Information category on mobile devices.

Plus, according to CEO Adrian Montgomery:

“One out of every two American males between 18 and 34 visits an Enthusiast Gaming property every month, which is a pretty powerful statistic and a statistic a lot of traditional media companies would be envious of.”(6)

Combining the elements of its four core pillars; Media, Talent, eSports, and Experiential, Enthusiast Gaming provides a unique engagement opportunity resulting in more points of connection than any other video game and esports platform, with unparalleled access to the influential and lucrative GenZ and Millennial audience.(10)

  • The Company’s Media segment comprises nearly 100+ gaming-related websites and about 1,000+ YouTube channels that generated approximately 42 billion views of content in 2020.
  • The Talent division works with roughly 550+ leading gamers and influencers to create new and unique content.
  • Luminosity Gaming, the Company’s esports division, ranked as the #1 watched esports organization on Twitch, competes across several game titles, including the Vancouver Titans Overwatch team and the Seattle Surge Call of Duty team and works with over 50 leading streamers and athletes, including xQc, Nick Eh 30, Chica and more.
  • Enthusiast Gaming’s Experiential business owns and operates Canada’s largest gaming expo, EGLX, and the largest B2B mobile gaming event in Europe, Pocket Gamer Connects. Not to mention, it also hosts over 50 live and virtual events annually.(10)

There’s Also Growing Buzz About Enthusiast Gaming’s Competitive Advantage

The second a gamer puts down their controller, Enthusiast Gaming Holdings Inc. owns their forthcoming gaming experience. Suppose a gamer is playing a game such as Call of Duty online with friends, for example. In that case, the Enthusiast Gaming experience begins the second the game ends.

With Enthusiast Gaming, millions of gamers are:(9)

  • Reading an article or joining a gaming forum on one of its 100+ unique gaming sites.
  • Watching a YouTube video on one of its approximately 1,000 channels.
  • Watching live-streamed content from one of its 500+ influencers across Twitch, YouTube, Twitter, Instagram, and TikTok.
  • Attending a live or virtual event to connect with other gamers. These include custom activations, tournaments, merchandise, and player and celebrity challenges.
  • Gamers can even participate in seven professional eSports teams, gaming experiences with a Call of Duty team, and even the Overwatch league.

Enthusiast Gaming Recently Reported Blowout Earnings  

For the fourth quarter of 2020, the company reported that:(7)

  • Revenue was $42.5 million, a 34% increase compared to pro forma revenue of $31.7 million in Q3 2020.
  • Gross profit was approximately $8.1 million, an increase of about 52% compared to pro forma gross profit of around $5.3 million in Q3 2020.
  • Direct advertising sales were approximately $3.3 million, an increase of nearly 230% compared to about $1.0 million in Q3 2020.
  • Paid subscribers grew an estimated 60% in the past 12 months to end the year at about 122,000.
  • Total views across written and video content were roughly 9.9 billion for Q4.
  • RPV (revenue per viewer) was about $0.52, an estimated increase of 100% from approximately $0.26 in Q3 2020, driven by the inclusion of Omnia Media results for a full quarter and strong results from Media and Content.

For full-year 2020:(7)

  • The Company joined the ‘Comscore 100’ ranking of Top 100 Internet Properties in the United States – one of only two gaming properties to make the list alongside Amazon’s TWITCH.TV, ranked #1 Gaming Information property for unique visitor traffic from mobile devices.
  • Strengthened balance sheet by approximately $50 million with the combination of a bought deal financing for gross proceeds of $42.5 million and the reduction of the Company’s indebtedness through the conversion of its outstanding debentures of approximately $9 million.
  • Announced key partnership deals with Samsung and TikTok.
  • Signed exclusive monetization agreements with nine new video game fan communities.
  • Announced the launch of Upcomer, a new premium online publication dedicated to the growing needs of today’s esports fan.
  • Entered into a binding term sheet to acquire Vedatis SAS, owners of Icy Veins, the Company’s largest affiliate fan community, for €7 million in cash and stock, plus an earnout subject to certain milestones being achieved.

Plus, future growth potential may be staggeringly abundant. Consider this.

In short, potential growth looks off the charts with this company.

Enthusiast Gaming Holdings Inc. United States NASDAQ: (EGLX) Canada TSX: (EGLX) is Led by a Powerhouse Team

ADRIAN MONTGOMERY
CHIEF EXECUTIVE OFFICER

Adrian has been a senior officer and director of several public and private companies in the fields of media, sports and entertainment, finance and industrial services. Most recently, he served as president and CEO of Canucks Sports and Entertainment, one of Canada’s premier sports and entertainment organizations. He is the former president of Tuckamore Capital Management, a conglomerate with over $700 million of annual revenue, and was also the former CEO of QM Environmental, one of Canada’s largest contracting companies. Mr. Montgomery has been active in the political process throughout his career and has served as a political advisor to Leaders at all levels of government. Mr. Montgomery is also a member of the New York State Bar Association.

MENASHE KESTENBAUM
PRESIDENT

Menashe began his career in video games when he was 13, writing for IGN, a large gaming media site, where he eventually became a community leader. After studying and subsequently lecturing in the Institute of Advanced Talmudic Law in Jerusalem for eight years, Menashe returned to his passion for the video game industry and launched his first gaming blog, “Nintendo Enthusiast”, in 2011. In 2014, he returned to Toronto and incorporated Enthusiast. He has personally owned and operated gaming websites to a readership of over 2 million gamers, and has led Enthusiast and grown a writing and community staff team of over 84 people.

ALEX MACDONALD
CHIEF FINANCIAL OFFICER

Alex is an experienced public company CFO and financial professional. He was the CFO of Aquilini GameCo Inc., and led the 2019 mergers and acquisitions between Aquilini GameCo, Enthusiast Gaming Properties, Luminosity Gaming, and J55 Capital, becoming the CFO of the resulting issuer (Enthusiast Gaming). Prior to this he was the CFO of TSXV listed Peeks Social Ltd. (previously Keek Inc.) from 2014-2018, having also served on the board of directors in 2015. He is experienced in overseeing “go-public” transactions, managing growth stage companies, and Canadian expansions into the United States. Alex is a Chartered Professional Accountant and Chartered Accountant (CPA, CA) and a graduate of the University of Toronto. He also serves on the board of directors of the NATO Association of Canada, acting as Treasurer on the executive committee.

ERIC BERNOFSKY
CHIEF CORPORATE OFFICER

Eric is a seasoned media and technology executive with a background in finance, corporate development, operations and capital markets. He was the founding CFO of Enthusiast Gaming and later served as its COO, leading the Company through three rounds of seed and growth capital before leading its go-public transaction in 2018 and its merger with Aquilini GameCo/Luminosity Gaming in 2019. He has overseen the growth of the Company from pre revenue to over $100 million in annual revenue. Currently, as Chief Corporate Officer, Eric oversees Strategy and M&A as well as Investor Relations, Public Relations and Corporate Services.

THAMBA THARMALINGAM
CHIEF OPERATING OFFICER

Thamba is a results-driven executive with a strong track record of driving growth, innovation and digital transformation and joins Enthusiast Gaming after being Managing Partner at a boutique VC firm and prior to that holding various senior executive roles at Rogers Communications for 10 years leading sales & marketing functions including revenue, subscriber growth, product, commercial strategy, pricing, base management, & retention for Mobile and Cable business units. Thamba started his career in Software Development & Product Management with Technology companies including ATI Technologies, AMD, Fed-Ex & a CRM Start-up.

FRANCESCO AQUILINI
CHAIRMAN

Francesco is a Canadian businessman, investor, and philanthropist. He has been the managing director of Vancouver-based Aquilini Investment Group LP, the parent company of several diverse subsidiaries since 1978. Aquilini Investment Group LP is best known for its ownership of the Vancouver Canucks and Rogers Arena. He obtained his BA from the Simon Fraser University in 1984 and his MBA from University of California, Los Angeles in 1994.

ALAN FRIEDMAN
DIRECTOR

Alan is a seasoned corporate finance professional and is co-founder of a number of TSX and TSX.V listed companies. Alan has extensive experience assembling companies and executing seed financing. Alan is a non-practicing attorney and has played an integral role in the acquisition of various assets, financings and go-public transactions for many companies. He also worked for a top 5 South African Bank. He is a director of several private and public companies.

MICHAEL BECKERMAN
DIRECTOR

Michael is a highly experienced C-level sale and marketing executive with over 20 years’ experience. For almost a decade, Michael held senior sales and marketing positions at NIKE in Asia, Europe and the U.S., including serving as Director of Advertising for NIKE in Europe and Director of Retail for NIKE in the U.S. After leaving NIKE, Mr. Beckerman went on to become the VP Marketing for Canadian Airlines from 1996 to 1999; VP Marketing and International for MVP.com from 1999 to 2001; Chief Marketing Officer for BMO Financial Group from 2001 to 2006; President and then Chief Executive Officer for Ariad Communications from 2006 to 2015 and then CEO of both Ariad and US based Bluespire Marketing until 2016. Since 2016 Mr. Beckerman has run a marketing consulting practice with clients in technology, travel, sports and automotive.

BEN COLABRESE
DIRECTOR

Ben is the EVP, Finance at The Toronto Blue Jays, which is wholly owned by Rogers Communications. Ben has been with Rogers since 2015 where he held the roles of VP & GM of Mobilicity (which Rogers acquired in 2015), and SVP, Finance for the X1 Syndication Program. Previous to Rogers, Ben was the CFO of Pelmorex Media/The Weather Network. Prior to joining Pelmorex Ben was the VP, Corporate Development at Rogers from July 2005 to April 2013 where he was responsible for all M&A activity and completed over 30 transactions.

ROBB CHASE
DIRECTOR

Rob serves as the chief financial officer of Blue Ant Media, a global producer, television broadcaster and distributor headquartered in Toronto, with offices in the USA, Asia-Pacific, New Zealand and UK. Robb has served as the President and CEO of Quiznos Canada Restaurant Corporation; The President and CEO of Herbal Magic ULC; the President of Papa John’s International and as the CEO of Famous Players Inc., a division of Viacom Inc., until the company’s sale in 2005. Prior to these endeavours, Robb spent ten years with PepsiCo Restaurants International and its spinoff company Tricon Global restaurants in a variety of executive roles. Moreover, he has been engaged in senior marketing positions with Cara Operations, Seven Up Canada and Johnson and Johnson. Robb is the past Chairman of YPO Gold Ontario and has previously been a director of publicly traded firms Imvescor and Sleeman’s Breweries. Robb is also a past director of the Toronto International Film Festival (TIFF), the Canadian Film Centre, Restaurants Canada, St. Joseph’s Hospital Foundation, and the US based National Restaurant Association.

The Top Reasons to Consider Enthusiast Gaming Holdings Inc. United States NASDAQ: (EGLX) Canada TSX: (EGLX)

  1. After a record-setting year for video games, the NPD Group says gamers just spent a record estimated $5.61 billion in March – a roughly 18% jump from about $4.75 billion year-over-year.(2)
  2. In the first three months of 2021, video game sales have already increased approximately 30% to $14.92 billion from just about $11.47 billion year-over-year.(2)(1) Analysts also believe the gaming industry could be worth about $295.6 billion by 2026, up from roughly $162 billion in 2020, according to Mordor Intelligence.(2)
  3. According to the Financial Post, nearly half of the world’s approximately 7.7 billion people are gamers.(3)
  4. According to Enthusiast Gaming CEO Adrian Montgomery, “One out of every two American males between 18 and 34 visits an Enthusiast Gaming property every month, which is a pretty powerful statistic and a statistic a lot of traditional media companies would be envious of.”(6)
  5. The second a gamer puts down their controller, Enthusiast Gaming Holdings Inc. owns their forthcoming gaming experience. Suppose a gamer is playing a game such as Call of Duty online with friends, for example. In that case, the Enthusiast experience begins the second the game ends.
  6. For the fourth quarter of 2020, the Company reported approximately $42.5 million in revenue, a nearly 34% increase compared to pro forma revenue of about $31.7 million in Q3 2020. Gross profit was also about $8.1 million, an increase of roughly 52% compared to pro forma gross profit of around $5.3 million in Q3 2020.(7)
  7. The Company joined the ‘Comscore 100’ ranking of Top 100 Internet Properties in the United States – one of only two gaming properties to make the list alongside Amazon’s TWITCH.TV, which ranked #1 Gaming Information property for unique visitor traffic from mobile devices.(7)
  8. It strengthened its balance sheet by approximately $50 million with the combination of a bought deal financing for gross proceeds of about $42.5 million and the reduction of the Company’s indebtedness through the conversion of its outstanding debentures of approximately $9 million.(7)
  9. It announced significant partnership deals with Samsung and TikTok.(7)
  10. Enthusiast Gaming Holdings Inc. has bullish technicals, with solid fundamental growth.
Source 1: https://financialpost.com/investing/enthusiast-gaming-files-for-u-s-listing-amid-acquisition-spree
Source 2: https://www.mediaplaynews.com/npd-march-sets-another-monthly-video-game-revenue-record/
Source 3: https://financialpost.com/business-trends/enthusiast-gaming-positioned-to-be-the-game-changer-in-expanding-esports-space
Source 4: https://www.marketwatch.com/story/videogames-are-a-bigger-industry-than-sports-and-movies-combined-thanks-to-the-pandemic-11608654990
Source 5: https://www.reuters.com/article/us-videogames-outlook/global-esports-revenues-to-top-1-billion-in-2019-report-idUSKCN1Q11XY
Source 6: https://www.theglobeandmail.com/business/article-toronto-video-game-platform-enthusiast-gaming-to-list-shares-on-nasdaq/
Source 7: https://www.enthusiastgaming.com/enthusiast-gaming-announces-127-6-million-of-pro-forma-revenue-in-2020/
Source 8: https://stockcharts.com/h-sc/ui?s=EGLX.TO
Source 9: https://www.enthusiastgaming.com/wp-content/uploads/2021/03/EG-Presentation-February-2021-2.pdf
Source 10: https://www.globenewswire.com/news-release/2021/04/20/2213101/0/en/Enthusiast-Gaming-to-Commence-Trading-on-Nasdaq.html
Source 11: https://www.barchart.com/stocks/quotes/EGLX.TO/opinion
Company Contact
Address: 1100 Melville St Suite 830 Vancouver BC V6E 4A6 CA
Phone: +1 604 785-0850
Web: https://www.enthusiastgaming.com
Company Description
Enthusiast Gaming is building the largest media platform for video games and esports fans to connect and engage worldwide. Reaching over 300 million gamers every month, the Company is a member of the ‘Comscore 100’ ranking of the top Internet Properties in the US and the largest in the Gaming Information category on mobile devices. Combining the elements of its four core pillars; Media, Talent, Esports and Experiential, Enthusiast Gaming provides a unique engagement opportunity resulting in more points of connection than any other video game and esports platform, with unparalleled access to the influential and lucrative GenZ and Millennial audience. Through ownership and exclusivity of our array of digital media and entertainment assets, we have built a vast and proprietary network of like-minded communities – we own the fan experience.